The Travel Agents Association of India (TAAI) has approached the law markers to intervene on the impending commissions issue with the airline industry. TAAI has demanded an increase in their airline commission to 5% from the present 1% as a necessity to make the business viable.
“We have approached the civil aviation ministry and the regulator DGCA but to no avail. We have written to some MPs and MLAs to take up our cause with the government and get us justice,” TAAI President, Iqbal Mulla. The lawmakers have assured to take up their demand with the authorities concerned. Mulla warned that if no solution comes out, the association will have to look at legal recourse.
“The reduction in commission is hurting the overall business and it if continues, about 50% of the travel agents may have to exit the business,” Mulla said. Domestic airlines like Air India, Kingfisher and Jet Airways too announced a similar move but following intense pressure from the lobby restoried the commission though at a lower 3%. In June, however, Air India, Jet and Etihad reduced the commission to 1%.
Earlier, in a letter to the regulator, TAAI had urged it to direct airlines to pay 5% commission to them.